Pro-Accountants Should Be Involved in the Development of the Africa Continental Free Trade Area

1. Pro-Accountants Should Be Involved in the Development of the Africa Continental Free Trade Area (ACFTA) Having worked in a variety of African countries, this is a fantastic opportunity for Pro-Accountants to be involved in the creation of the ACFTA. The African Continental Free Trade Area (ACFTA) is an economic plan that was implemented in the 1990s to facilitate increased trade between African nations. The African Union (AU) adopted the project in 2001 to encourage intra-African business because of its success. The plan's current state, on the other hand, paints a different picture. Tariff Reductions Numerous studies have demonstrated that Africa's Continental Free Trade Area (AfCFTA) has the capacity to transform continent-wide trade. By promoting streamlined trade regimes, it is anticipated to reduce trade expenses. Additionally, it would permit African businesses to trade on the continental market and provide excellent protection. The AfCFTA has the potential to improve lives across Africa in addition to enhancing trade. It would also help women become financially independent. This is due to the fact that it would facilitate people's free movement. Additionally, it would improve physical infrastructure. Additionally, it may reduce the cost of doing business through official channels. Additionally, the AfCFTA would make it easier for informal traders to become more integrated into the continental market. It would cut costs associated with harassment, transportation, and security by lowering tariffs and enhancing clearance procedures. Additionally, it might make it easier for women, who account for a significant portion of Africa's trade, to move freely. The AfCFTA has the potential to alleviate poverty for fifty million Africans. But African governments need to do more to make the AfCFTA work. In particular, they need to give the AfCFTA the power it needs by giving it enough resources and direction. Gender issues must also be addressed during the negotiation process. Nontariff Policy Levers One of the African Continental Free Trade Area's (AfCFTA) top policy goals should be to increase intra-African trade. Nontariff barriers preventing trade within Africa will be addressed by this new agreement, which will begin trading on January 1, 2021.

2. At the border, nontariff barriers include sanitary and procedural obstacles. The cost of exporting goods goes up because of these obstacles. Exports could significantly expand if nontariff barriers were reduced by 10%. Transportation, compliance, and administrative red tape are among these expenses. It is estimated that nontariff barriers cost at least three times as much as standard customs duties. They include origin rules, intricate quotas, technical obstacles, and government officials seeking rental opportunities. Trade can benefit from tariff reductions, but more is needed. In Africa, nontariff measures are more important for business growth. To facilitate trade and build a more robust market, tariff reductions and these policies ought to be combined. African Regional Economic Communities (RECs) The establishment of an African Continental Free Trade Area (AfCFTA) would contribute to enhancing the standard of living for citizens of African nations. It would make it easier for people and goods to move across the continent. It would also make it possible for businesses in Africa to profit from trade on the continent. This is because its tariffs are lower and it offers comprehensive protection. To ensure the AfCFTA's success, significant policy modifications must be implemented. Africa in particular needs to learn how to cooperate. Additionally, they must be prepared to assist employees who are harmed by job losses. Policies that can retrain employees and prepare them for the workforce of the future must be developed. It is anticipated that the AfCFTA will revolutionize African trade. It will also make it easier to move people and goods across borders. Additionally, it will reorganize regional value chains and make it possible for African businesses to profit from trade on the continent. By lowering tariffs and enhancing cooperation between customs, it would also cut costs associated with trade. Intra-African Trade Presents a Different Picture The picture of intra-African trade is different from that of other regional blocks because intra- African trade is relatively small. It is below the European and North American averages. However, there are some inland nations eager to join the regional value chains. Strong structural reforms are essential if African nations are to fully utilize their trade potential. The rule of law should be strengthened, digital connectivity should be improved, and special economic zones should make infrastructure access easier. In addition, African

3. nations ought to lessen the burden of regulations, lessen the burden of tariffs, and increase access to foreign inputs by lowering domestic taxes. Historically, Africa's trading routes were constructed to transport consumer goods and raw materials to the rest of the world. However, in today's world, the majority of African nations rely more on the continental market than on their primary commodity exports. As a result, trade between Africa and the rest of the world is asymmetrical. Material-intensive exports are less specialized, while value-added exports are more specialized. Africa, in particular, has the potential to increase trade with Asia because of the country's large and growing middle class. Bio of Author My name is Matt Brown, and I have been a professional academic writer at Research Prospect since its inception. I have assisted hundreds of students who needed help with dissertations. Apart from academic writing, I also manage a large team of writers and content marketers who work to provide dissertation help to students.